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ArbitrOption’s portfolio has two kinds of investments: merger arbitrage positions and special situations. In general, merger arbitrage comprises 80% or more of the portfolio and special situations are 20% or less. A special situation occurs when a publicly-traded company has a pending event that is expected to increase or decrease shareholder value. To be included…

Current Favorite: Orbital ATK (OA) ArbitrOption’s investable universe includes risk arbitrage and special situation opportunities with three basic characteristics: a pending corporate event must be disclosed by the company’s management or Board of Directors (no “rumortrage”) the pending corporate event must have a calculable terminal value and timeline the company must have exchange-listed options with…

What qualifies as the kind of corporate event that ArbitrOption seeks for its portfolio? We apply an event-driven investment strategy that focuses on opportunities of three distinct types: Strategic Mergers A strategic merger is a transaction in which the target company has synergies with the acquiring company that will allow the whole to be greater…

Current Favorite: Time Warner (TWX) ArbitrOption’s investable universe includes risk arbitrage and special situation opportunities with three basic characteristics: a pending corporate event must be disclosed by the company’s management or Board of Directors (no “rumortrage”) the pending corporate event must have a calculable terminal value and timeline the company must have exchange-listed options with…

Though the two topics seem unrelated, it turns out national security has a role in event-driven investing. The topics intersect in the form of regulatory approval for deals – a process overseen by the Committee on Foreign Investment in the United States, also known as CFIUS. In fact, CFIUS review was part of the regulatory…

Current Favorite: Mobileye N.V. (MBLY) ArbitrOption’s investable universe includes risk arbitrage and special situation opportunities with three basic characteristics: a pending corporate event must be disclosed by the company’s management or Board of Directors (no “rumortrage”) the pending corporate event must have a calculable terminal value and timeline the company must have exchange-listed options with suitable…

– Current Favorite: Mead Johnson Nutrition Co. (MJN) ArbitrOption’s investable universe includes risk arbitrage and special situation opportunities with three basic characteristics: a pending corporate event must be disclosed by the company’s management or Board of Directors (no “rumortrage”) the pending corporate event must have a calculable terminal value and timeline the company must…

Published 2/13/17 – On its face, event-driven investing seems simple. There’s a corporate event that changes the fundamental value of a company: a merger, acquisition, spinoff, regulatory development, or legal ruling. There’s a start and a finish to the event, and often, there is a concrete price for the “before” and “after.” You just…

Since the presidential campaign cycle, “fake news” has itself been a news item. The topic took on a whole new magnitude of interest with the upset in election results. – Source: www.google.com/trends/ Of course, for the investing community, credibility of information has always been a crucial issue. Information is the single most valuable…

Published 12/13/16 – Current Favorite: B/E Aerospace Inc. (BEAV) ArbitrOption’s investable universe includes risk arbitrage and special situation opportunities with three basic characteristics: a pending corporate event must be disclosed by the company’s management or Board of Directors (no “rumortrage”) the pending corporate event must have a calculable terminal value and timeline the company must…

ArbitrOption’s investment strategy is designed to be insensitive to the ups and downs of the stock market. While the universe of investment opportunities is infinitely variable, our deal-related investments have a very narrow set of outcomes. That’s why we can use options to gain exposure to specific stock outcomes, yet have a low correlation to…

Published 9/10/16 – Current Favorite: LinkedIn Corp (LNKD) ArbitrOption’s investable universe includes risk arbitrage and special situation opportunities with three basic characteristics: a pending corporate event must be disclosed by the company’s management or Board of Directors (no “rumortrage”) the pending corporate event must have a calculable terminal value and timeline the company must have…